e do you reccoment they hold in liquid savings as reserves? why? b. How much of their investment portfolio do you reccoment they hold in savings and other short term vehicles? Explain. c. How much, in total, should they hold in short term liquid assets?     Determine the right amount of

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A: Given information: Total retirement savings amount is $1,450,000 Kathy’s investment is 4 times more…

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A: Note: Assuming, the question has repeated rate of return displayed, hence taking 6% and 15%, other…

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A: Investment = 216000 Interest Income per year = 12000 Rate on first fund = 4.5% Rate on second fund…

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A: “Since you have posted a question with multiple subparts, we will solve the first three subparts for…

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A: solution Given Future value $15,000 Period  (n) 3 years Interest rate (r) 5%…

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A: Solution:- When an amount is invested, it earns interest.  The amount initially invested is called…

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A: Ideally One should save, should invest and should hold in liquid assets. All these contribute to a…

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A: N = 30, PV =0, PMT = 8000, rate = 7% use FV function in Excel amount accumulated at retirement =…

Q: The parents of a newborn have decided to make deposits into an investment account on each of their…

A: Formula Present value = P*[1-(1+g)n*(1+r)-n]/(r-g) Where P - First payment i.e. $2500 g - Annual…

Q: Mohammed estimate that he will need RO 10,000 in 5 years to fund his university education. How much…

A: Compound interest is referred as the in interest calculated on principal along with all accumulated…

Q: hat do you think the future worth of her investment will be?  b. How much interest will she earn?

A: Interest: Interest is the income generated from investing an amount in a bank or any other financial…

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A: A concept through which it is studied that the current worth of money is higher than its future…

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A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

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A: Let the single investment today = P Future value needed = $2 million n = 35 years r = 4%

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A: The maximum amount which a person can consume is the savings which are available for the person and…

Q: John has an investment opportunity that promises to pay him $16,000 in four years. He could earn a…

A: Present Value:The value of today’s amount to be paid or received in the future at a compound…

Q: Your newborn daughter has received a total of 8,000 in cash from various friends and relatives. If…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

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A: Present value = Future value * Present value of $1 table factor

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A: A money market fund is mutual fund that invests in liquid financial instruments. These instruments…

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Q: Under these assumptions, how much can he spend each year after he retires?

A: Future value: Future value is the amount derived from compounding the present amount or cashflows.…

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A: A retirement account a strategy for putting money away to be spent after retirement pension account,…

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A: To find the maximum return, linear programming problem will be setup in Excel and solved by excel…

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A: Simple interest formula = A = P (1+rt) Where, A = Final amount i.e. Principal + Interest P =…

Q: Suzette is receiving $10,000 today, $15,000 one year from today, and $25,000 four years from today.…

A: GIVEN, PV0= $10,000 PV1= $15,000 PV4= $25,000 R= 9.6% N = 30

Q: Imagine that Homer Simpson actually invested the ​$160,000 he earned providing Mr. Burns…

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Q: receiving 25,000.00 pesos from his grandfather yearly and has decided to invest it next year to a…

A: The present value is value without interest and future value is value with interest. Can be found…

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A: Future value is expected value at a certain date in future at given rate of interest. Given: Present…

Q: Consider the following independent situations. a.    Mike Finley wishes to become a millionaire. His…

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A: Investment account: It is an investor’s account in which investments are managed.

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A: Given:

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A: Future Value =$120,000 N = 7

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A: Assumption: It is assumed that the amount deposited in the certificate of deposit is ‘a’.

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A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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A: In this we have to calculate interest in both cases and than calculate the amount invested in each.

Q: 3. Tyler and Sarah earn approximately $93,000 a year after taxes. They have an investment portfolio…

A: An individual shall have at least i.e. 6 months of the amount after-tax income in the liquid…

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A: Present Value: When a predetermined rate of return is applied to a future amount of money or stream…

Q: Xiao and Shiao Jing-jian, newlyweds from Laramie, Wyoming, have decided to begin investing for the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…